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Central Bank says Japan is ‘recovering’

The Bank of Japan issued a more upbeat assessment of the Japanese economy on Thursday, saying for the first time in more than two years that conditions were recovering.

TBOJ stuck with a pledge to expand the monetary base by 60 to 70 trillion yen ($709 billion) per year, as the economy is starting to recover moderately.

On this news the yen strengthened vs the USD to 98.76 .

What’s key for Abenomics is Prime minster is to win the July 21 election , this would end the split parliament , this would enable Abe to push through changes to increase the competitive of Japan economy .Lets see!

Abenomics has had such a great effect on changing the mood in Japan , that’s a huge success but isn’t enough to make Japan grow .

In a self-praising move, the BoJ said that the aggressive monetary easing measures it implemented in April are working to stimulate the economy and reverse consumer-price deflation.

Following a two-day policy meeting, the bank said in a statement that, “Japan’s economy is starting to recover moderately”.

This therefore signals that the central bank is unlikely to take additional steps soon.

The announcement marks the first time since early 2011 that the bank formally described the economy as being on an expansionary path. In fact, the bank’s official view has steadily brightened over the past six months.

Under Governor Kuroda, who took over last March, the BoJ has been pumping an unprecedented amount of money into the economy through increased purchases of government bonds. The board said on Thursday that it would stick with its goal of expanding Japan’s monetary base at a rate of Y60tn to Y70tn a year.

Following the announcement, the yield on the 10-year Japanese government bond has traded in a tight range between 0.79 and 0.96% for nearly two months now.